IDEAS home Printed from https://ideas.repec.org/p/red/sed004/207.html
   My bibliography  Save this paper

Housing, Capital Investment, and Credit Market Imperfections

Author

Listed:
  • Zhixiong Zeng
  • Charles Ka Yui Leung

Abstract

We study the role of residential housing in financing capital investment in a dynamic stochastic general equilibrium framework. Residential housing, though nonproductive, is shown to be important in determining the cost of external financing for investment on productive capital. Housing stock serves as collaterals in financial contracts for capital investment. We find that fluctuations in the return to capital investment is not enough for accounting the cyclical behavior of external finance premia and bankruptcy rates. Fluctuations of house prices help generate countercyclical external finance premia and bankruptcy rates by a great deal

Suggested Citation

  • Zhixiong Zeng & Charles Ka Yui Leung, 2004. "Housing, Capital Investment, and Credit Market Imperfections," 2004 Meeting Papers 207, Society for Economic Dynamics.
    • Handle: RePEc:red:sed004:207
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leung, Charles, 2004. "Macroeconomics and housing: a review of the literature," Journal of Housing Economics, Elsevier, vol. 13(4), pages 249-267, December.

    More about this item

    Keywords

    Housing; Capital Investment; Credit Market Imperfections;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed004:207. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.